FX Week 23 February 2014

G20 endorses normalization


The G20 communique offered tacit USD support by arguing that the normalization of US monetary policy is appropriate, even though some EM countries have called on the Fed to be less aggressive in tapering QE. Indeed, even as EM countries are undergoing another bout of pressure due to weak Chinese PMI data last week, and with political volatility back on the rise, the developed countries appear confident enough to rebuff these demands, instead calling on EM countries to take more responsibility for their own affairs by implementing more reforms.

To know more click here PDF